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Stock X has a beta of 1.6 and an expected return of 19.33 percent. Stock Y...

Stock X has a beta of 1.6 and an expected return of 19.33 percent. Stock Y has a beta of 1.21 and an expected return of 15.57 percent. What is the risk-free rate if these securities both plot on the security market line?

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ven Stoc Espeded Retim ERY) = 19.33 区beded Retum ERX) (R) -RF ERY)-RF 933-RF 5,57- RF .21 RF+6RE - lXIS 57 21x19.33 ч.912-23.3893 0.39 RF 15227 0.39 RF-3.90% Risk fru Rali ds 3.90%, it these se untie b ne.

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